Thyssenkrupp: Agreement With EU on Tata JV Still Possible

By Patrick Costello

Thyssenkrupp AG (TKA.XE) said Monday that it is still in talks with the EU over a proposed merger with India's Tata Steel (500470.BY) following reports that the European Commission is prepared to block the companies' joint venture.

The German steel conglomerate said the EU was using the adjustments to remedies it offered along with Tata Steel as an opportunity to conduct another market test.

"We are in ongoing talks with the EU-Commission on the results of the renewed market test," a representative from Thyssenkrupp said. "There are still various ways to adjust the commitments already made, without compromising on the economic logic of the joint venture."

A further discussion with EU Competition Commissioner Margrethe Vestager on the commission's assessment of the commitments is scheduled this week, Thyssenkrupp said.

The Financial Times reported over the weekend that the EU is "increasingly likely" to block the joint venture unless greater concessions are offered. Antitrust regulators in Brussels are concerned the deal would result in "less choice and higher prices" for steel used in the car industry and electrical products as well as coated steel, the FT wrote.

The two companies recently offered concessions including the sale of two plants that produce galvanized automotive steel. But sources believe further disposals could underline the rationale for the deal, according to the FT.

Thyssenkrupp called the joint venture a "logical strategic step" for the two companies' steel businesses, adding that the European steel market would benefit from the creation of "a strong number two."

Write to Patrick Costello at patrick.costello@dowjones.com.

(END) Dow Jones Newswires

May 06, 2019 04:01 ET (08:01 GMT)

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